NVO vs. NVS: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at NVO and NVS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
NVO’s market capitalization stands at 303.34 billion USD, while NVS’s is 237.03 billion USD, indicating their market valuations are broadly comparable.
NVS carries a higher beta at 0.53, indicating it’s more sensitive to market moves, while NVO (beta: 0.22) exhibits greater stability.
NVO and NVS are both American Depositary Receipts (ADRs). This provides U.S. investors with straightforward access to investing in these foreign-listed companies without directly engaging with overseas stock exchanges.
| Symbol | NVO | NVS |
|---|---|---|
| Company Name | Novo Nordisk A/S | Novartis AG |
| Country | DK | CH |
| Sector | Healthcare | Healthcare |
| Industry | Drug Manufacturers - General | Drug Manufacturers - General |
| CEO | Lars Fruergaard Jorgensen | Vasant Narasimhan |
| Price | 68.51 USD | 120.01 USD |
| Market Cap | 303.34 billion USD | 237.03 billion USD |
| Beta | 0.22 | 0.53 |
| Exchange | NYSE | NYSE |
| IPO Date | April 30, 1981 | November 7, 1996 |
| ADR | Yes | Yes |
Historical Performance
This chart compares the performance of NVO and NVS by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
NVO
81.24%
Drug Manufacturers - General Industry
- Max
- 95.59%
- Q3
- 78.00%
- Median
- 31.21%
- Q1
- 16.63%
- Min
- 2.76%
In the upper quartile for the Drug Manufacturers - General industry, NVO’s Return on Equity of 81.24% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
NVS
30.71%
Drug Manufacturers - General Industry
- Max
- 95.59%
- Q3
- 78.00%
- Median
- 31.21%
- Q1
- 16.63%
- Min
- 2.76%
NVS’s Return on Equity of 30.71% is on par with the norm for the Drug Manufacturers - General industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
NVO
38.75%
Drug Manufacturers - General Industry
- Max
- 25.72%
- Q3
- 17.89%
- Median
- 11.47%
- Q1
- 9.39%
- Min
- 2.87%
NVO’s Return on Invested Capital of 38.75% is exceptionally high, placing it well beyond the typical range for the Drug Manufacturers - General industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
NVS
17.87%
Drug Manufacturers - General Industry
- Max
- 25.72%
- Q3
- 17.89%
- Median
- 11.47%
- Q1
- 9.39%
- Min
- 2.87%
NVS’s Return on Invested Capital of 17.87% is in line with the norm for the Drug Manufacturers - General industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
NVO
34.51%
Drug Manufacturers - General Industry
- Max
- 34.51%
- Q3
- 23.04%
- Median
- 14.73%
- Q1
- 11.78%
- Min
- 2.18%
A Net Profit Margin of 34.51% places NVO in the upper quartile for the Drug Manufacturers - General industry, signifying strong profitability and more effective cost management than most of its peers.
NVS
24.16%
Drug Manufacturers - General Industry
- Max
- 34.51%
- Q3
- 23.04%
- Median
- 14.73%
- Q1
- 11.78%
- Min
- 2.18%
A Net Profit Margin of 24.16% places NVS in the upper quartile for the Drug Manufacturers - General industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
NVO
44.53%
Drug Manufacturers - General Industry
- Max
- 40.70%
- Q3
- 28.90%
- Median
- 23.41%
- Q1
- 19.05%
- Min
- 16.13%
NVO’s Operating Profit Margin of 44.53% is exceptionally high, placing it well above the typical range for the Drug Manufacturers - General industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
NVS
29.75%
Drug Manufacturers - General Industry
- Max
- 40.70%
- Q3
- 28.90%
- Median
- 23.41%
- Q1
- 19.05%
- Min
- 16.13%
An Operating Profit Margin of 29.75% places NVS in the upper quartile for the Drug Manufacturers - General industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | NVO | NVS |
|---|---|---|
| Return on Equity (TTM) | 81.24% | 30.71% |
| Return on Assets (TTM) | 21.39% | 12.87% |
| Return on Invested Capital (TTM) | 38.75% | 17.87% |
| Net Profit Margin (TTM) | 34.51% | 24.16% |
| Operating Profit Margin (TTM) | 44.53% | 29.75% |
| Gross Profit Margin (TTM) | 84.33% | 75.65% |
Financial Strength
Current Ratio
NVO
0.74
Drug Manufacturers - General Industry
- Max
- 1.67
- Q3
- 1.38
- Median
- 1.27
- Q1
- 0.89
- Min
- 0.74
NVO’s Current Ratio of 0.74 falls into the lower quartile for the Drug Manufacturers - General industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
NVS
0.79
Drug Manufacturers - General Industry
- Max
- 1.67
- Q3
- 1.38
- Median
- 1.27
- Q1
- 0.89
- Min
- 0.74
NVS’s Current Ratio of 0.79 falls into the lower quartile for the Drug Manufacturers - General industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
NVO
0.86
Drug Manufacturers - General Industry
- Max
- 2.95
- Q3
- 2.57
- Median
- 1.08
- Q1
- 0.71
- Min
- 0.28
NVO’s Debt-to-Equity Ratio of 0.86 is typical for the Drug Manufacturers - General industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
NVS
0.81
Drug Manufacturers - General Industry
- Max
- 2.95
- Q3
- 2.57
- Median
- 1.08
- Q1
- 0.71
- Min
- 0.28
NVS’s Debt-to-Equity Ratio of 0.81 is typical for the Drug Manufacturers - General industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
NVO
17.84
Drug Manufacturers - General Industry
- Max
- 27.46
- Q3
- 14.40
- Median
- 7.80
- Q1
- 4.07
- Min
- 1.67
NVO’s Interest Coverage Ratio of 17.84 is in the upper quartile for the Drug Manufacturers - General industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
NVS
20.17
Drug Manufacturers - General Industry
- Max
- 27.46
- Q3
- 14.40
- Median
- 7.80
- Q1
- 4.07
- Min
- 1.67
NVS’s Interest Coverage Ratio of 20.17 is in the upper quartile for the Drug Manufacturers - General industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | NVO | NVS |
|---|---|---|
| Current Ratio (TTM) | 0.74 | 0.79 |
| Quick Ratio (TTM) | 0.56 | 0.61 |
| Debt-to-Equity Ratio (TTM) | 0.86 | 0.81 |
| Debt-to-Asset Ratio (TTM) | 0.24 | 0.31 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.50 | 1.11 |
| Interest Coverage Ratio (TTM) | 17.84 | 20.17 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for NVO and NVS. These metrics are based on the companies’ annual financial reports.
Revenue Growth (YoY)
EPS Growth (YoY)
Free Cash Flow Growth (YoY)
Dividend
Dividend Yield
NVO
2.61%
Drug Manufacturers - General Industry
- Max
- 8.72%
- Q3
- 4.27%
- Median
- 3.42%
- Q1
- 2.43%
- Min
- 0.00%
NVO’s Dividend Yield of 2.61% is consistent with its peers in the Drug Manufacturers - General industry, providing a dividend return that is standard for its sector.
NVS
3.64%
Drug Manufacturers - General Industry
- Max
- 8.72%
- Q3
- 4.27%
- Median
- 3.42%
- Q1
- 2.43%
- Min
- 0.00%
NVS’s Dividend Yield of 3.64% is consistent with its peers in the Drug Manufacturers - General industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
NVO
48.61%
Drug Manufacturers - General Industry
- Max
- 266.46%
- Q3
- 79.84%
- Median
- 61.93%
- Q1
- 45.09%
- Min
- 0.00%
NVO’s Dividend Payout Ratio of 48.61% is within the typical range for the Drug Manufacturers - General industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
NVS
60.27%
Drug Manufacturers - General Industry
- Max
- 266.46%
- Q3
- 79.84%
- Median
- 61.93%
- Q1
- 45.09%
- Min
- 0.00%
NVS’s Dividend Payout Ratio of 60.27% is within the typical range for the Drug Manufacturers - General industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | NVO | NVS |
|---|---|---|
| Dividend Yield (TTM) | 2.61% | 3.64% |
| Dividend Payout Ratio (TTM) | 48.61% | 60.27% |
Valuation
Price-to-Earnings Ratio
NVO
18.57
Drug Manufacturers - General Industry
- Max
- 27.97
- Q3
- 25.84
- Median
- 18.32
- Q1
- 16.65
- Min
- 3.39
NVO’s P/E Ratio of 18.57 is within the middle range for the Drug Manufacturers - General industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
NVS
18.43
Drug Manufacturers - General Industry
- Max
- 27.97
- Q3
- 25.84
- Median
- 18.32
- Q1
- 16.65
- Min
- 3.39
NVS’s P/E Ratio of 18.43 is within the middle range for the Drug Manufacturers - General industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
NVO
1.41
Drug Manufacturers - General Industry
- Max
- 3.10
- Q3
- 3.09
- Median
- 2.72
- Q1
- 2.18
- Min
- 1.02
In the lower quartile for the Drug Manufacturers - General industry, NVO’s Forward PEG Ratio of 1.41 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
NVS
3.10
Drug Manufacturers - General Industry
- Max
- 3.10
- Q3
- 3.09
- Median
- 2.72
- Q1
- 2.18
- Min
- 1.02
A Forward PEG Ratio of 3.10 places NVS in the upper quartile for the Drug Manufacturers - General industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
Price-to-Sales Ratio
NVO
6.47
Drug Manufacturers - General Industry
- Max
- 6.47
- Q3
- 4.47
- Median
- 3.53
- Q1
- 1.96
- Min
- 0.41
NVO’s P/S Ratio of 6.47 is in the upper echelon for the Drug Manufacturers - General industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
NVS
4.29
Drug Manufacturers - General Industry
- Max
- 6.47
- Q3
- 4.47
- Median
- 3.53
- Q1
- 1.96
- Min
- 0.41
NVS’s P/S Ratio of 4.29 aligns with the market consensus for the Drug Manufacturers - General industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
NVO
14.02
Drug Manufacturers - General Industry
- Max
- 14.02
- Q3
- 8.90
- Median
- 5.00
- Q1
- 3.42
- Min
- 1.08
The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - General industry.
NVS
6.18
Drug Manufacturers - General Industry
- Max
- 14.02
- Q3
- 8.90
- Median
- 5.00
- Q1
- 3.42
- Min
- 1.08
The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - General industry.
Valuation at a Glance
| Symbol | NVO | NVS |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 18.57 | 18.43 |
| Forward PEG Ratio (TTM) | 1.41 | 3.10 |
| Price-to-Sales Ratio (P/S, TTM) | 6.47 | 4.29 |
| Price-to-Book Ratio (P/B, TTM) | 14.02 | 6.18 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 26.25 | 14.20 |
| EV-to-EBITDA (TTM) | 12.70 | 11.59 |
| EV-to-Sales (TTM) | 6.74 | 4.75 |